North American Summary and Highlights 27 November
Overview - The USD was generally softer despite the US data calendar providing few surprises.
North American session
The USD extended its losses in North America, slipping after the first round of data, though there was little in it that was surprising, apart from a lower advance goods trade deficit, with initial claims, durable goods orders and the GDP revisions in line with expectations. Later core PCE prices rise an as expected 0.3% in October, with personal income stronger than expected with a 0.6% rise but spending in line at 0.4%.
UST yields and equities were both lower. EUR/USD and GBP/USD gains stalled before 1.06 and 1.27 respectively while USD/JPY found support below 150.50. AUD/USD gains stalled at .65 while USD/CAD losses found a base above 1.40.
European morning session
The USD was weaker across the board through the European morning, losing around 0.5% against the EUR and JPY, and similar amounts against most other European currencies. GBP lagged behind slightly, with EUR/GBP gaining 10 pips to 0.8345, while AUD and CAD gained even more modestly, rising around 0.1%.
Newswise there was little of any note. French and German consumer confidence data were both weaker on the month, but have been on a rising trend so the decline was of limited significance. However, there was a significant move in France/Germany yield spreads, which went out to 86bps at the 10 year tenor, the highest since 2012.